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Regarding guidelines for awarding annual maintenance contracts (AMCs) for
computer hardware/ site maintenance etc. and delegation of financial powers
Circular No. 29
dated 16th
May 2001
Ministry has recently reviewed the powers available to Heads of
Departments under Delegation of Financial Power Rules (DFPRs) for awarding
Annual Maintenance Contracts (AMCs) for maintenance of computers, sites etc. At
present as per Item No.26 (b) of schedule V of DFPRs Heads of Departments have
full powers for hire or maintenance of computers when the work is entrusted to
public sector undertakings. Doubts were raised regarding the scope of expression
�Maintenance of Computers�, as to whether it would include maintenance of
site alongwith the DG sets, air conditioners etc. Department of Revenue has
examined the matter in consultation with Department of Electronics and
Department of Expenditure. Keeping in view the advise of these departments the
following guidelines and delegation are prescribed in the matter of awarding of
AMCs:
1.
Maintenance of Site: Maintenance of computers generally includes
maintenance of computer hardware (processors, memory etc.) and peripherals
(printers, plotters, scanners, secondary storage device like tape devices etc.)
Therefore the maintenance of site which includes DG sets, air conditioners etc.
is not covered under the scope of �Maintenance of Computers�. Delegation
described under aforesaid Item No.26 (b) would not apply to maintenance of DG
sets, air conditioners, electrical installations etc. for computers. Therefore
Head of Department has no power to award the AMC for site; in all such cases the
Ministry�s prior sanction is required to be obtained.
2. Maintenance
of Computers:
(a)
In the case of maintenance of computer hardware, heads of the department
shall have full powers to award AMC to public sector undertakings. It may be
clarified that the procedure as laid down in the GFRs will have to be followed
in all cases of award of AMC for hardware. Thus when the value of the contract
exceeds Rs.2 lakhs quotations will need to be invited and selection made
accordingly. AMC is to be awarded to the PSU only if its quotation is the lowest
one. In case the lowest bidder happens to be a PSU, Head of Department can
directly award the AMC at his level. However if the lowest bidder is a non-PSU
the prior approval of Ministry would need to be obtained (subject to the
delegation of power as at para 3 below).
(b)
In case of maintenance of software for desktop PCs, in-house staff can do
the software maintenance as these systems have generally preloaded software. No.
AMC should be awarded for such software.
(c)
In case of maintenance of software for Mainframe computers, head of
department shall have the full powers to award AMC to PSU subject to the same
guidelines as specified in sub para (a) above.
3.
However, considering the large number of references being received from
the Commissionerate for award of AMC for hardware and peripherals, and in view
of non-availability of suitable public undertakings at some cities who can take
up the AMC, the Ministry has delegated the powers to the extent of Rs.2 lakhs
per annum to Heads of Departments for award of Annual Maintenance Contract to
private parties also, subject to compliance of the procedure laid down under
GFRs. Therefore the proposals for awarding AMC of computer hardware and
peripherals to private persons upto an aggregate limit of Rs.2 lakhs in a
financial year can be decided at the level of Head of Department.
All proposals in excess of the above powers shall continue to be sent
to the Ministry through Commissioner (Systems). All Heads of Departments are
advised to send consolidated proposal for their Commissionerate. The proposal
shall indicate clearly that Head of Department has exercised his powers upto
Rs.2 lakhs for award of AMC in the current financial year.
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